Minimum wage

The minimum wage will increase by 21p to £5.73 an hour from October 2008. The rate for 18 to 21-year-olds will increase to £4.77 whilst 16 to 17-year-olds will get £3.53. This should lead around a million people who currently earn £5.52 receiving a pay increase.

The minimum wage was introduced in 1999 by the government initially at a rate of £3.60 and was aimed at employers of low paid individuals some of whom earnt less than 50p an hour. Almost all workers over 16 are entitled to a minimum wage irrespective of their work or size of their employer.

Employers who fail to pay the minimum rate risk unlimited fines, with the more serious cases of non-compliance tried in a Crown Court.